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GAIL Announces Share Buyback At Over 17% Premium

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As announced earlier, GAIL was to consider buyback on March 31, 2021. And the announcement and decision on the front has been announced.

 
GAIL Announces Share Buyback At Over 17% Premium

Before going ahead with the company's filing on the corporate action.

Buyback of shares or share purchase is a corporate action in which firms buyback shares from the shareholders at a premium. This is to reduce the liquidity in the stock and hence subsequently increase its value going forward.

GAIL Buyback- Premium of over 17% considering last closing price of April 1, 2022

At the meeting of the Board of Directors ("Board") of the Company held on March 3 I, 2022, the
Board has unanimously approved a proposal for the buyback of 5,69,85,463 (Five Crore Sixty Nine Lakh Eighty Five Thousand Four Hundred and Sixty Three) fully paid-up equity shares of face value Rs.10/- each representing 1.28% of the total number of fully paid-up equity shares in the paid-up share
capital of the Company from the shareholders of the Company at a price of Rs. 190/- (Rupees One Hundred Ninety only) per equity share (the "Buyback Offer Price") payable in cash for an aggregate consideration not exceeding Rs. I 082,72,37,970 (Rupees One Thousand Eighty Two Crore Seventy Two
Lakh Thirty Seven Thousand Nine Hundred and Seventy only) (the "Buyback Offer Size") representing 2.50% & 2.22% of the aggregate of the fully paid-up equity share capital and free reserves as per the
audited standalone and consolidated financial statements of the Company, respectively for the financial year ended March 31, 2021 (the last audited standalone and consolidated financial statements available as on the date of Board meeting recommending the proposal of the Buyback) in terms of Sections 68, 69, 70 and other applicable provisions, if any, of the Companies Act, 2013 and rulesmade thereunder and the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018, as amended ("Buyback Regulations") ("Buyback").

 

In short the company shall buyback shares at a maximum buyback price of Rs. 190 and the buyback shall be 2.5% and 2.22% of the total of the fully paid up share and free reserves.

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